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If you have changed your job during FY 2025-26 or worked in two different companies within the same year, you strictly need to be extra careful while filing Income Tax Return (ITR). Tax experts have warned that such salaried employees should declare their total annual income by adding together the salaries received from both the employers (companies). In case of not doing so, a notice of tax evasion or discrepancy may come directly from the Income Tax Department and there may be a long delay in getting your tax refund.
Often employees assume that when both the companies have deducted TDS at their respective levels, then they no longer need any additional additions and deductions. But as per tax rules, both the companies calculate the tax slab and TDS only on the basis of the salary paid by them. In such a situation, when both the salaries are added, there is a huge difference between the actual tax payable on your total income and the TDS deducted, which is your responsibility to pay.
Don’t make the mistake of claiming deductions and tax breaks twice
According to tax expert Pranab Sai S, employees working in two different companies should claim tax exemptions and deductions like House Rent Allowance (HRA), Section 80C (LIC, PPF etc), Section 80D (Mediclaim) and Standard Deduction of Rs 50,000 only once in the entire financial year.
It has been observed that many employees unknowingly or due to lack of knowledge show the same investment in the declaration forms of both the companies. The result is that both the companies give you different tax exemptions, which is completely illegal. While filing ITR, first of all the gross salary received from both the companies should be added together and only then the valid deductions should be deducted.
Match these 5 important documents before filing ITR
Experts recommend that before submitting the return form, you should download and keep all the following financial documents with you and match them:
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Form 16: TDS certificate issued by both the companies.
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Salary Slip: Salary slips of the last months of both the companies.
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Form 26AS: Tax passbook, showing TDS deposited.
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AIS and TIS: Annual Information Statement and Taxpayer Information Summary.
If your salary shown in Form 16 does not match with the digital record in AIS or Form 26AS, do not rush to file the return. First understand the technical reason for that difference and if necessary, talk to the HR of your old company and get necessary improvements done. Filing returns on the basis of incorrect or incomplete information may get your case stuck in scrutiny.
Why does the Income Tax Department notice come? Know the inner reason
The Income Tax Department now conducts highly automated scrutiny of all tax returns with the help of advanced data analytics, AI tools and digital records. If the salary shown in the ITR filed by you is less than the records in Form 16 or Form 26AS by even ₹1, there is a TDS credit mismatch or double claim of deductions is detected, the department’s system immediately considers it as ‘red flag’ (suspicious) and issues a computer generated notice.
Experts say that the easiest way to avoid this headache is that whenever you change jobs in the middle of the year, while joining the new company, you should register with the accounts department there. Form 12B Please submit. Through this form, your new company gets complete official information about the salary of your previous job and the TDS deducted there, from which they deduct your exact tax at the end of the year.
The safest way is to correctly match the salary, TDS and income from other sources of both the companies in time. For middle class employees changing jobs, a little care while filing ITR can completely save you from legal and financial troubles in future.